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FOR 2017 11. 05. 2017.   >>  17:28 0

EU increased the growth forecast for the eurozone

The European Union has increased its forecast for economic growth in the 28-nation bloc, saying the recovery was gaining strength despite the elevated uncertainties of Brexit and protectionist trade policies.

The European Commission's upward revision of growth on Thursday came largely as a result of an improving global economy, with the United States and China helping lift Europe.

According to the EU executive's latest estimate, the 19-nation eurozone economy will expand by 1.7 percent in 2017, to be followed by 1.8 percent in 2018. That is compared with estimates made in February of 1.6 percent and 1.8 percent, respectively.

"It is good news ... that the high uncertainty that has characterized the past twelve months may be starting to ease. But the euro area recovery in jobs and investment remains uneven," EU Economy Commissioner Pierre Moscovici said.

The protectionist stance on world trade by the Trump administration, Britain's divorce from the European Union, and the fragility of European banks could all negatively impact the future of the economy, the Commission said.

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